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Should You Buy the Dip in Semiconductor Stocks?

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It's proven another difficult week for the semiconductors with Advanced Micro Devices  (AMD)  and Nvidia  (NVDA)  both facing pressure in intraday trading Wednesday. 

How should investors approach the semis as a whole? 

Bob Lang, co-portfolio manager of the Action Alerts PLUS investing club broke down his top tips in the video above. 


BOB LANG: I'd say the advice, just to hold right now. And you know, again, this is a group that tends to lead technology. And I think that with the supply chain issues that have been very well documented, even for this group, once these things are ironed out, demands still remain very strong for technology, equipment, and PCs, and phones, and that sort of thing. So I think that the opportunity is going to create itself. It's just not right now.

But this is a time when there's a somewhat-- there's an old saying, when there's blood on the streets, that's when you want to get in there. And certainly, these stocks have been bleeding quite a bit here. And you know, anybody who's been holding these stocks for a long time understands that it takes a while for these stocks to move. But you know, this stock having been cut in half from the recent highs, it's been a painful ride. But you basically understand that this is a good strong quality company. The names that we own in the portfolio are good and strong. And you use these dips to add to the position. So that's what we're going to be doing. 

Find out how Action Alerts PLUS is approaching Advanced Micro Devices, Nvidia and more here. 

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